Greece has reached a deal with its European creditors to avoid an exit from the euro and financial chaos. CBC News brings you the latest updates.

A man beats the queues by making an early morning cash withdrawl from a cash machine on July 12, 2015 in Athens, Greece. The people of Greece continue their daily life as much as possible as a planned meeting of European Union leaders is cancelled during 'very difficult' talks over Greece's third bailout continue. Eurozone finance ministers adjourned the talks last night and are set to resume today. (Photo by Christopher Furlong/Getty Images)

Greek Prime Minister Alexis Tsipras was meeting with French President Francois Hollande and German Chancellor Angela Merkel during a break in discussions at the emergency meeting of the eurozone's 19 leaders.

A Greek official gave no further details about the meeting, which also included Donald Tusk, who chairs meetings of European leaders. Sunday's summit was dealing exclusively with Greece, which desperately needs a deal with European creditors to stave off immediate financial collapse and the country's potential exit from the euro. But any deal looks like it will require the Greek government to impose tough austerity measures.

The broad outline of a deal appeared to consist of a long series commitments from Greek Prime Minister Alexis Tsipras to push through much of a drastic austerity program within days, while the 18 other eurozone leaders would commit to start talks on a new bailout program.

In a four-page draft proposal put to eurozone leaders and obtained by The Associated Press, language up for discussion spoke of a potential "time out from the euro area" for Greece if no agreement could be found.

The draft proposal highlighted the increasing frustration with Greece during five months of fruitless talks.

In the document, Greece committed itself to pushing a first set of measures through parliament by Wednesday. Despite the stinging conditions on pension, market and privatization reforms, Greek Prime Minister Tsipras insisted his government was ready to clinch a deal.

A race to save Greece from bankruptcy and keep it in the eurozone gathered pace this week when Athens formally applied for a three-year loan and European authorities launched an accelerated review of the request. The EU will decide on Sunday whether to extend more help to its fiscally floundering member.

The ESM serves as the “permanent crisis resolution mechanism for the countries of the euro area,” its website says. The Luxembourg-based financial institution received a formal request from Greece earlier this week.

U.S. Treasury Secretary Jack Lew said on Sunday he was "encouraged by reports of some progress" in the discussions between Greece and its creditors, urging parties on both sides to show flexibility, according to a statement issued by a spokesman.

"Rebuilding trust requires demonstrating that a program will be implemented and that there will be measures to make the debt sustainable," Lew said, according to the Treasury Department statement.

People gathered for an anti-EU demonstration in Athens calling for a No to any agreement with the creditors which would lead to further austerity measures. A draft proposal suggests tax hikes and spending cuts will be required to secure bailout funds.(Andreas Solaro/AFP/Getty Images)

A Greek government official says Prime Minister Alexis Tsipras wants to strike a deal with European creditors at Sunday's summit to avoid a meltdown of the country's teetering banks.

The official, who spoke on condition of anonymity because of the sensitivity of the ongoing talks, said European Central Bank President Mario Draghi has warned eurozone finance ministers that Greek banks are at risk and that the need for a deal is pressing.

Without the prospect of a deal, the ECB will not be able to increase emergency liquidity assistance to Greek banks. It has frozen its help over the past couple of weeks as the banks have stayed closed.

The official also says that some of the creditor proposals, such as a requirement for Greece to deposit 50 billion euros ($56 billion) worth of state-owned assets into a special fund for subsequent sell-off, appear intended to "humiliate" the Greek government.

European officials said talks between Greece and its European creditors appear to be stuck on several issues and a resolution is not anticipated for a while yet.

One official, who spoke on condition of anonymity because he was not authorized to speak publicly, said the main difference centred on when the European Central Bank could start to increase its emergency liquidity assistance to Greek banks.

Greek Prime Minister Alexis Tsipras wants a deal to pave the way to ECB help as soon as Monday, the official said, while European creditors would prefer to wait until the Greek Parliament passes several austerity measures.

Another official, who also spoke on condition of anonymity, said some issues remain difficult, including a proposal for Greece to transfer billions of euros worth of state assets to an independent fund in Luxembourg under European supervision.

Greek Prime Minister Alexis Tsipras and skeptical European leaders are negotiating past a self-imposed deadline into the early hours of Monday, with talks stuck on how Greece would guarantee austerity measures in exchange for a rescue package to prevent its banks from collapsing.

The leaders of the eurozone are a hit on Twitter Sunday night. Unfortunately for them, the trending of #ThisIsACoup is all hostile.

As the eurozone leaders push a list of demands in exchange for giving Greece essential short-term financial aid, many people are taking to social media to back Greek Prime Minister Alexis Tsipras. They say the proposals on everything from pension rules to privatizations amount to a coup.

The term is topping Twitter.com's list of hashtag trends.

Even the Nobel Prize-winning economist Paul Krugman got into the act early Monday: "This Eurogroup list of demands is madness. The trending hashtag #ThisIsACoup is exactly right."

Krugman also penned a lengthy blog post outlining his disillusionment with the proposal.

The compromise proposal early Monday followed more than 12 hours of deliberations in Brussels, in which Greek Prime Minister Alexis Tsipras sought to persuade his creditors in the eurozone to grant him a bailout deal that will secure Greece's financial future and its place in the euro.

It's been a long night for eurozone leaders and journalists covering the ongoing talks. There is some speculation percolating out of Brussels that an early morning press conference may include an announcement that a compromise deal has been reached.

A Greek official says Prime Minister Alexis Tsipras has two issues to settle with European creditors before he's in a position to reach an agreement that would help shore up his country's finances and its future in the euro.

The official, who is speaking on condition of anonymity because the talks are ongoing, says the sticking points are the future involvement of the International Monetary Fund in Greece's bailout program and a proposal that Greece set aside 50 billion euros worth of state-owned assets in a fund for eventual privatization.

The eurozone's 19 leaders were still meeting at dawn Monday after Tsipras wrapped up his third four-way meeting with German Chancellor Angela Merkel, French President Francois Hollande and Donald Tusk, who chairs meetings of European leaders.

The official said that if there is an agreement, Greek banks may be in a position to get help from the European Central Bank soon. Without it, they risk running out of money this week.

Olaf Gersemann, business editor of the German publication Die Welt & Welt am Sonntag, is reporting that Greek PM Alexis Tsipras has not convinced his eurozone counterparts to remove the condition of IMF supervision from the bailout plan. The Associated Press reported earlier that the IMF's involvement was one of two key sticking points preventing a final deal from being reach. The other is the privatization of government holdings.

Greece and its creditors may be working past their self-imposed deadline, but currency traders don't seem too alarmed about the uncertainty in the eurozone.

The euro was up 0.2 per cent Monday at $1.1140.

Craig Erlam, senior market analyst at OANDA in London, said investors appear fairly optimistic that the two sides will soon strike a deal, at least in principle.

He says that with Greek banks on the verge of collapse, "the country really has run out of time."

Greece's banks have been closed for two weeks and cash-machine withdrawals have been limited to 60 euros a day as the European Central Bank rejected calls to increase the amount of emergency liquidity for Greek banks. Many believe they will run out of cash this week.

The European Union's top economy official says he's hopeful for a deal to keep Greece in the euro -- and that the German and French leaders will be at the centre of it.

Pierre Moscovici played down ideological differences among Greece's European creditors on Monday, telling France's RTL radio that the marathon overnight negotiations show there is a "shared willingness to ensure that Greece remains in the euro."

Earlier in the negotiations there had been indications of splits among the European countries, with German Chancellor Angela Merkel demanding tough conditions before releasing aid while French President Francois Hollande prioritized unity among the nations that use the euro.

Moscovici said Merkel and Hollande have "solid and direct" relations despite ideological differences and that "there is no solution for Europe" without agreement between the eurozone's two leading powers.